For some authors, books seem heavy, as if the responsibility
for having something big to say crushes their ability to say things clearly. I
feel that way about the humanist economic historian
Karl Polanyi.
The Great Transformation, his courageous, crusading work questioning the ideology of the free market, sometimes seems like it was deliberately written to blunt the force of his argument. It reads as if Polanyi couldn't quite bring
himself to jump across the ever-widening rift his analysis created in the
world’s economic thinking. (To be fair, Polanyi wrote the book in a great hurry
during World War II, and the shadow of that conflict probably made it hard to
venture as far in words as he had in thought.)
So it’s great news that
Polity has released
For a New West, a collection of
Polanyi’s unpublished essays and lecture notes. As a young man, Polanyi started
studying law but dropped out, instead becoming an economic journalist and
commentator for
Der Oesterreichische
Volkswirt, the leading German-language financial weekly in Europe. The pieces in this collection, culled from an archive of his papers at Concordia
University in Montreal, are refreshingly clear – perhaps because they were
never intended for publication. In these essays, we can watch Polanyi as he teases out the implications of his arguments. The book’s title, taken
from the title Polanyi gave one of the essays, doesn't capture the scope
of his work. Polanyi wasn't only blowing
the dust off the West’s self-image. His thought required retooling many of the
economic nostrums that have come to dominate the entire planet and wresting
politics and culture from collapsing into economics. He wanted a gut renovation
of almost all the conceits of economics and a renewed commitment
to freedom, justice, and the concept of the people ruling themselves.
Here he is, questioning whether the need for food and the
desire for gain should be considered economic matters:
We…are surrounded by plenty but
freeze our economic life in terms of scarcity. That is why we are able to
accept the fiction that millionaires are actuated by fear of starvation.
... We rightly assume
that our market economy appeals to what we call “economic motives,” that is,
fear of hunger and hope of gain. But, by calling hunger and gain “economic
motives,” do we not prejudge the very possibilities of adjustment of the
economic sphere of life? Let us consider the point. In one sense, the answer
must be yes. Since market economy takes care of production and distribution of
material goods, and hunger and gain (as we define them) are insuring the
working of that system, it is justifiable to call them economic motives, since
they happen to be the motive on which the economic system rests. But are they
economic in any other sense. Are they intrinsically economic? In the sense in
which aesthetic motives or religious motives are aesthetic or religious, that
is, as the outcome and expression of an experience the quality of which is
self-evident? Not at all. There is nothing economic about hunger: if a man is
hungry, there is nothing specific he can do. Being hungry is certainly no
indication of how to go about production. It may induce him to commit robbery,
but that is not an economic activity. Neither is the cerebral drive of gain
specifically economic. Its idea, and maybe its urge, if such a thing exists,
have no connection with the production and distribution of material goods.
Nonetheless, while he questioned the value and values of
capitalism, Polanyi had little sympathy for orthodox Marxism, which he thought
involved economic absolutism:
Marxist determinism is based on
some kind of railway timetable of social development: Upon slave society
follows feudalism, upon feudalism capitalism, upon capitalism socialism….It was
such a mistaken belief in economic determinism as a general law that made many
Marxists – not, to my knowledge, Marx himself – prophesy that our personal
freedom must disappear together with the free enterprise system. Actually
there is no necessity for this whatsoever.
Still, he noted, under the laissez-faire system, the
economic and the political meld together in a marriage that also tends towards
fascist intrusions on freedom:
A point is reached where neither
the political nor the economic system functions satisfactorily. A feeling of
general insecurity takes hold of society as a whole. There is [a] fascist short
cut to safeguard production at the price of sacrificing democracy. Democracy
can continue only with a change in the property system. Therefore the
destruction of democratic institutions is a safeguard for the continuation of
the industrial system.
His analysis of the tendencies of the free market alliance
between economics and politics seems incredibly prescient in light of the rise
of the Tea Party and the battle to tear down Obamacare or any new form of government-backed health insurance or social safety net:
While the action of the market
called forth widespread reactions and helped to create a strong popular demand
for political influence of the masses, the use of the power so gained was
greatly restricted by the nature of the market mechanism: isolated interventions,
however urgent on social grounds, could often be shown to be economically
harmful, while economically useful interventions of a planned type could not
even be considered. In political terms, while piecemeal reform could be
discredited as a damaging interference with the working of the market, outright
socialist solutions, which would have been economically advantageous, had to be
excluded altogether. Under conditions such as these, the striking power of the
forces of popular democracy was necessarily limited.
Finally, he asked what might be called the ultimate economic
question: what’s the use of having the great wealth and abundance produced by
modern society unless it goes to make people’s lives better:
An industrial society has one thing
in abundance, and that is material welfare more than is good for it. If, to
uphold justice and the freedom to restore meaning and unity in life, we should
ever be called upon to sacrifice some efficiency in production, economy in
consumption, or rationality of administration, an industrial civilization can
afford it….we can afford to be both just and free.
Contradict that, Koch brothers! Occupy Wall Street couldn't
have said it better.
Today every militant must feel profoundly that he is not called to coerce humanity to its salvation but to restore humanity to its freedom, and he must have the inner conviction that what will save the world is freedom -- and nothing else.
Polanyi was a man of his time ahead of his time. We need him
more than ever.
***
One caveat:
For a New West focuses
on unpublished or draft writings and lecture notes. But, in her preface, Kari Polanyi Levitt mentions some additional essays that sound like winners -- Jean-Jacques Rousseau: Is Freedom Possible,
Economy and Democracy, and The Mechanism of the World Economic Crisis. They previously
appeared in various German-language newspapers and, in one case, in an Italian
translation – and thus are not technically unpublished. But so what? It would
have been great if they had been included here. I hope the fact that they were
left out means there’s more Polanyi yet to come.